Iraq and Jordan are pushing forward with the long-stalled Basra-Aqaba pipeline, a $18 billion project designed to move Iraqi crude through Jordanian territory to the Red Sea port of Aqaba. The urgency comes as the US-Iran war exposes risks in the Strait of Hormuz, a chokepoint that the pipeline would bypass entirely.
Why the Strait of Hormuz Matters
Nearly a fifth of the world's oil passes through the Strait of Hormuz, the narrow waterway between Iran and Oman. The ongoing US-Iran conflict has made that passage increasingly dangerous. For Iraq, which relies on the strait for most of its crude exports, the threat is existential. The Basra-Aqaba pipeline offers a direct overland route to the Red Sea, cutting out the strait altogether.
The Political Push
Iraqi Prime Minister Ali Falih Al-Zaidi and Jordan's foreign minister are both directly involved in the project. Their engagement signals a shift from years of talk to real action. The pipeline has been discussed for decades but never built. Now, with war next door, the calculus has changed.
What the Pipeline Would Do
The pipeline would carry Iraqi crude from the Basra region across Jordan to Aqaba. From there, tankers could load oil for global markets without entering the Gulf. The $18 billion price tag covers construction, pumping stations, and port upgrades. Iraq would gain a secure export route; Jordan would collect transit fees and secure a steady oil supply.
Remaining Hurdles
Security across the desert route remains a concern. Parts of western Iraq and eastern Jordan have seen instability. Financing is another question — $18 billion is a lot even for oil-rich Iraq. But the project's backers say the current crisis makes the investment unavoidable. The next step is finalizing transit agreements and lining up construction contracts. No timeline has been set, but both governments say they want shovels in the ground soon.
